Barclays 2014 Annual Report Download - page 55

barclays.com/annualreport Barclays PLC Annual Report 2014 I 53
The Committee’s work
The significant matters addressed by the Committee during 2014 are described below:
Area of focus Matter addressed Role of the Committee Conclusion/action taken
Conduct risk The roll-out of the conduct risk
management framework, with the
aim of embedding the ownership and
management of conduct risk in each
business, and the reduction of
customer complaint levels including
referrals to the Financial Ombudsman
Service (FOS)
Q Tracked progress of the conduct
risk programme via quarterly
reports from management
Q Debated the respective roles and
responsibilities of the first and
second lines of defence
Q Supported management in
establishing levels of acceptance
and accountability for conduct risk
by the businesses including
adoption of formal KPIs
Q Worked with management to
develop key risk indicators and
metrics
Q Assessed any conduct risk impacts
arising from the strategy update
Q Evaluated complaints handling,
tracking progress of initiatives to
reduce overall complaints volumes
and those referred to FOS
Q The Committee supported Barclays’
conduct risk strategy and endorsed
measures to foster acceptance by the
businesses, including the introduction
of KPIs, the requirement for culture
and values training at induction and
at regular intervals thereafter, and the
requirement for all employees to
attest to reading and understanding
the Code of Conduct
Q The Committee continued to focus on
the level of customer complaints
referred to the FOS
Cultural change The effective implementation of the
Transform culture and values
programme and progress in delivering
a number of activities to facilitate
change
Q Assessed the status of
implementation, levels of
engagement across the Group and
the support provided to the senior
leaders group in setting the values
and helping colleagues understand
the importance of doing business
in the right way
Q The Committee concluded that good
progress is being made but suggested
that management should do more to
highlight to colleagues the positive
outcomes arising from a customer
focus
Q The majority of Committee members
attended Barclays Culture and Values
programme in 2014
Operational risk Approval of operational risk appetite
and the evaluation of any material
changes to the Group’s operational
risk profile and performance versus
risk appetite
Q Evaluated management’s
recommendations on operational
risk appetite, including measures
for the quantitative and qualitative
assessment of risks
Q Examined the quarterly operational
risk profile report, and debated how
areas of heightened risk might be
moved within risk appetite
Q Assessed updates on cyber risk,
examining the actions being taken
on monitoring, prevention and
detection
Q Evaluated a revised policy for new
product approval, the
implementation plan and lines of
accountability
Q The Committee recommended
operational risk appetite for 2015 to
the Board for approval
Q It tracked levels of operational risk
losses, concluding that the Group’s
operational risk profile was stable
overall, but that risk remained
heightened in respect of cyber
security, fraud, information, security
of premises and technology
Q The Committee approved the
implementation of the new Group
product approval process, to be
owned by the Risk function
Reputational issues How to ensure that reputational
issues facing Barclays, and the
financial services sector generally,
were being identified, managed and
anticipated, including ensuring that
the businesses recognise, assess and
manage potential risks at the earliest
possible stage
Q Provided input to revisions to the
reputational risk framework to align
it with Barclays’ revised governance
model, particularly the Enterprise
Risk Management Framework
Q Examined the results of
reputational risk horizon scans and
probed the adequacy of mitigation
measures in place
Q The Committee approved the revised
reputational risk framework for
roll-out across the Group
The Strategic Report Governance Risk review Financial review Financial statements Shareholder information